The long-term charts continue to highlight the importance of the market's current intermediate inflection point.

In my last update I discussed the fact that the market had reached a larger inflection point, and that one targeting method suggested S&P 500 (INDEXSP:.INX) 1777 (+/-) as a possible target zone for this wave at intermediate degree. We're almost there; and it's worth mentioning that the long-term charts indicate rising trend resistance is approaching. As I see it, we're now in a do-or-die situation for bears, and I'll outline this with a couple charts. If this market clears approaching long-term resistance, I think we have to go back into trend-following mode until proven otherwise. First things first, of course, but I want to put that warning out there well ahead of time.

The 30-minute chart shows the recent breakout over a cup-and-handle formation which, interestingly, also targets roughly 1777. If this is a standard five-wave rally, then it should be nearing completion -- but please note the caveat in blue on the chart below. It's always interesting to me when the stock charts align with events, and we have the FOMC announcement today. If trading today, keep in mind that the first semi-convincing directional move in the wake of the announcement is often a fake-out.

Author's note: The date in the chart below includes a typo. The date should read "10/30/13."

Click to enlarge

The daily chart shows approaching resistance which isn't visible at smaller time frames. The blue channel line connects the peaks of waves (1) and iii, and theoretically represents a rising resistance zone. Looking beyond that point in advance, in the event bulls can break out over that level and hold it as support, then look out above, because the rally would likely pick up steam with clear sailing overhead for the foreseeable future. Again, first things first, though...

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